Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  26-000083

 

MEETING DATE:

03/24/26

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Jessica Witt (714) 834-7250 

 

 

Lisa Fernandez (714) 834-7219

 

 

Subject:  Property Tax Resolution for Annexation of Gateway Notch Parcel to City of Irvine

 

     ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Resolution to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:  N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:           

Sole Source:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:    N/A

County Audit in last 3 years: No

   Levine Act Review Completed: N/A

 

    Prior Board Action:         N/A

 

RECOMMENDED ACTION(S):

 

Adopt Resolution approving the property tax exchange for the annexation of the Gateway notch parcels to the City of Irvine.

 

 

 

 

SUMMARY:

 

Annexation to the City of Irvine of the Gateway notch parcels within its sphere of influence will allow for the transfer of responsibility for provision of municipal services from the County of Orange to the City of Irvine.

 

 

 

BACKGROUND INFORMATION:

 

The Orange County Local Agency Formation Commission (LAFCO) received a petition from the City of Irvine (City) to annex approximately 1.97 acres of unincorporated territory consisting of two areas: Parcel 1, approximately 1.41 acres, and Parcel 2, approximately 0.56 acres, both located northwest of Bee Canyon Access Road and collectively referred to as the Gateway notch parcels.

 

In October 1980, the City and the County of Orange (County) entered into the “Master Property Tax Transfer Agreement Between the County of Orange and the City of Irvine to Provide for Property Tax Exchange in Areas Annexed by the City” (Master Property Tax Transfer Agreement) that determines the property tax allocation between the parties for existing and future annexations of unincorporated islands to the City. 

 

Consistent with the Master Property Tax Transfer Agreement, the City and County propose to use the same property tax exchange rates for the Gateway notch parcels whereby upon annexation by the City, the City shall receive 18.123825104 percent of the property tax and the County shall receive 81.876174896 percent of the County’s share of the 1 percent basic levy of property tax generated within the area to be annexed.  The Structural Fire Fund will remain unchanged as the City is a member of the Orange County Fire Authority. 

 

The City of Irvine’s City Council supported the Gateway notch parcels annexation, including the property tax exchange, adopting Resolution No. 26-13 (Attachment A) at its February 10, 2026, meeting. 

 

Therefore, the County Executive Office (CEO) recommends adoption of the proposed Resolution (Attachment B) approving a property tax exchange with the City in connection with the annexation of the Gateway notch parcels as depicted in the legal description and map attached to the Resolution. 

 

If approved, County will submit the Resolution to LAFCO’s executive office, which will generate a certificate of filing.  The LAFCO Board will consider the item at the May Board meeting. If approved, the certificate of completion will be recorded with the Clerk-Recorder and subsequently presented to Auditor-Controller so that the appropriate tax adjustments can be made.

 

 

 

FINANCIAL IMPACT:

 

N/A

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

Auditor-Controller

 

ATTACHMENT(S):

 

Attachment A – Irvine City Council Resolution
Attachment B – Property Tax Resolution